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interest rate swaps

Why are interest rate swaps based upon the principle of comparative advantage?

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Interest rate swaps are based on the principle of comparative advantage because in this case, the exchange agreement between two parties is undertaken to take advantage of the comparative advantage obtained by each of the parties for their respective loans. In other words, the exchange of fixed rate loan to floating rate loans between the parties ...

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Why are interest rate swaps based upon the principle of comparative advantage?

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